The unemployment rate amid the coronavirus crisis has officially reached the highest level since the Great Depression. According to the Labor Department, 20.5 million jobs were lost in April and the unemployment rate climbed to 14.7 percent. This staggering report shows that a decade of job gains have been wiped out in just one month.
Bank of America economist Michelle Meyer recently told CNBC, ”This is the biggest and most acute shock that we've seen in post-war history.” In addition, economists at J.P. Morgan are forebodingly forecasting that unemployment will eventually climb as high as 20%.
J. P. Morgan economists are also predicting that the U.S. gross domestic product (GDP) will fall by 40%. GDP simply measures the size of our economy and our ability to pay off the debt our country incurs. Our national debt, which presently tops $24 trillion, already surpasses our GDP. In other words, we already owe more money than we’re taking in. If, as the J. P. Morgan economists are predicting, our GDP falls 40%, our outgo's exceeding of our income will indubitably become even more unsustainable.
Adding to the surety of our country’s insolvency is the $2.4 trillion in hot checks our government has doled out so far in its coronavirus stimulus packages, not to mention the $800 billion Nancy Pelosi and her fellow Democrats want to dole out in an additional stimulus package. All told, this year’s annual deficit, despite the possible 40% fall in GDP and 20% unemployment, is on track to top $3.5 trillion, which is almost three times higher the highest annual deficit in our country’s history.
If you’re wondering how a debtor nation like ours, which was already projected to spend $1.1 trillion more than its annual tax revenue even before the coronavirus, keeps itself propped up financially, then look no further than the Federal Reserve. The Federal Reserve or the Fed, as it is often called, is our country’s central bank. It is also an unconstitutional institution established by Congress in 1913 to ward off financial panic and bank failures. Of course, its ability to accomplish its mission was soon proven dubious by the Stock Market Crash of 1929, as well as the subsequent run on our nation’s banks, which plunged us into the Great Depression.
Unbeknownst to most Americans today, the Fed is no more a safeguard against America’s financial insolvency in 2020 than it was in 1929. While it creates the illusion of Uncle Sam being loaded with lucre by printing trillions of worthless dollars, the Fed is really just covering up with play money what Congress covers up with hot checks; namely, our country’s bankrupt coffers.
The financial insanity that has turned the White House into a nuthouse, the People’s House into a madhouse, and state houses into bughouses, during the coronavirus pandemic, is propelling thousands of businesses and millions of Americans toward bankruptcy. Consequently, there will be a deluge of loan defaults that will cause banks to fail, resulting in the inevitable collapse of our country’s financial house of cards. The simple truth is; no country in the history of the world has ever brainlessly buried itself beneath such a mountain of debt and rose again afterward to solvency, much less prosperity.